Farouk Soussa: Saudi Arabia

Saudi Arabia: The yield on the countrys dollar bond due January 2020 climbed nine basis points since March 4, the day before the United Arab Emirates, Saudi Arabia and Bahrain pulled their ambassadors after Qatar denounced the crackdown on the Muslim Brotherhood in Egypt . Rates on similar-maturity dollar debt from Abu Dhabi and Dubai fell in the period, according to Bloomberg. Qatar is perceived as the party at risk should the dispute escalate, regardless of the real likely economic impact, Farouk Soussa, head of Middle East economics at Citigroup Inc. in London , said in an April 15 e-mail. The whole affair has brought into sharper focus the credit dynamics of the individual GCC countries. Credit Risk Qatar is paying the price for its six-week spat with neighbors in the Gulf Cooperation Council as the nations borrowing costs and credit risk increase. The dispute is undermining investor confidence in Qatar even as the worlds biggest liquefied-natural-gas producer spends $200 billion on roads, stadiums and a new city in preparation for the 2022 soccer World Cup. The U.A.E. was the countrys fourth-biggest source of imports in 2012, and Qatars economy is vulnerable should Saudi Arabia hamper trade across its only land border, the Brookings Doha Center said last month. (news.financializer.com). As reported in the news.